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Southern Copper (SCCO) Outperforms Broader Market: What You Need to Know

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In the latest trading session, Southern Copper (SCCO - Free Report) closed at $128.29, marking a +2.37% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.28%.

Prior to today's trading, shares of the miner had gained 24.3% outpaced the Basic Materials sector's gain of 5.58% and the S&P 500's gain of 4.83%.

The investment community will be closely monitoring the performance of Southern Copper in its forthcoming earnings report. The company is forecasted to report an EPS of $1.11, showcasing a 3.48% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.09 billion, up 5.28% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.78 per share and revenue of $12.29 billion, indicating changes of +10.39% and +7.52%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Southern Copper. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.57% upward. As of now, Southern Copper holds a Zacks Rank of #3 (Hold).

With respect to valuation, Southern Copper is currently being traded at a Forward P/E ratio of 26.24. This signifies no noticeable deviation in comparison to the average Forward P/E of 26.24 for its industry.

Investors should also note that SCCO has a PEG ratio of 1.28 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Mining - Non Ferrous industry held an average PEG ratio of 0.71.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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